"The importance of being unimportant" refers to which of the following?
A) Small countries are likely to gain a great deal from trade since they have little impact on world prices.
B) Small countries are likely to gain a great deal from trade because they will be able to sell large amounts on world markets.
C) Large countries are likely to gain a great deal from trade since they have a large impact on world prices.
D) All countries are will gain from trade because every country will have a comparative advantage in at least one good.
Correct Answer:
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Q1: According to Adam Smith,international trade is based
Q2: If with one hour of labor time
Q3: A difference in relative commodity prices between
Q5: The Mercantilists believed in
A) running trade surpluses
B)
Q5: The Mercantilists did not advocate:
A)free trade
B)stimulating the
Q7: With one hour of labor time nation
Q9: If in a two-nation (A and B),two-commodity
Q9: With one hour of labor time nation
Q10: What proportion of international trade is based
Q12: If domestically 3X=3Y in nation A,while 1X=1Y
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